Following the news that Binance is to acquire 100% of cryptocurrency platform FTX;

Conrad Wiacek, Head of Sport Analysis at GlobalData, a leading data and analytics company, offers his view:

“In the midst of the ‘crypto winter’, it is no surprise to see various platforms beginning to merge. FTX and Binance are probably two of the highest profile and well-known trading platforms, highlighting that no one is invulnerable in the current market.

“However, this could be a seismic moment for the sports sponsorship industry. Over the last 18 months, the cryptocurrency market has become the biggest sponsorship sector, committing over $3 billion to sponsorship contracts over the next decade. We have seen some high-profile partnerships—Miami Heat’s FTX Arena and superstars Tom Brady, Steph Curry, and MLB’s Shohei Ohtani—while Binance is spending in excess of $60 million annually.

“Cryptocurrency was a safety net for the sports industry that insulated it against the downturn caused by COVID-19. However, with traditional sponsorship sectors now returning, this will likely mitigate the impact. Saying that, with the likes of Digitalbits failing to make payments on its $50 million annual deal with Inter Milan and Crypto.com pulling out of a deal with UEFA, it is likely that the sponsorship sector will see further turbulence as the cryptocurrency sector continues to struggle.”